For too long, Bristol has been plagued with the prevalent issue of insufficient homes to cater for its increasing population. This has resulted in a price hike in rents and expensive homes. To alleviate this problem, the city council has created ‘Goram Homes’.
Named after one of the mythical creators of Bristol, Goram Homes is a council-owned company with a model that is focused on providing affordable housing for its residents.
Marvin Rees, Bristol’s mayor, explained that this new initiative is designed to shift the focus of housing developers from profit making to meeting peoples’ housing needs. As a first, instead of selling development sites to private developers, the city council will control the building of the homes.
Existing legal restrictions on local authorities will no more prevent the city council as Goram will have the jurisdiction to handle all aspects of the project from start to finish. The Public Works Loan Board will loan the city council money at a lower interest rate that is obtainable in the banks. Goram will then borrow the funds required to build the homes for the city council.
Bristol City Council will make sure that all developments by Goram adhere to the affordable housing policy which most private developers ignore. Goram will still partner with other housing associations, developers and construction companies like Galliford Try to pool a team of building professionals with a plan of equal profit distribution. This collaboration provides the advantage of transferring the risk of the business to the city council which invariably reduces the profit margin obtainable by a developer.